In this post, Enrico Perotti explains the concept of financial stagnation, which occurs when an excess supply of savings is not reabsorbed by market adjustment, as interest rates fail to adjust the imbalance.

In the final post in his series on AI, Richard Baldwin describes how many of today’s most innovative products, apps, and systems are simply mash-ups of standard digital components, in a process Google's Hal Varian calls 'combinatorial innovation’.

Other Recent Blogs&Reviews:

A quarter-century after the empirical growth literature set out to explain why poor countries aren’t catching up with rich ones, cross-country regressions have mercifully gone out of fashion. In this post, Dev Patel, Justin Sandefur, and Arvind Subramanian point out that in the interim, the core facts have changed.

In this post, Diane Coyle reviews "The Fifth Risk", Michael Lewis's depiction of the chaos the Trump ‘administration’ is bringing to government as it expropriates whatever it can for personal financial benefit.